COMMUNICATION 


TO 


vi;vn  o 

( | MM  Vi  l u ls  1 ' /'11,  ' 

HON.  SAMUEL  B.  RUGGLES, 


CHAIRMAN 


JOINT  COMMITTEE  OF  CONFERENCE 


ON 


OF 


COMMERCIAL  FACILITIES. 


NEW  YORK  CHAMBER  OF  COMMERCE, 

NEW  YORK  PRODUCE  EXCHANGE, 

NEW  YORK  IMPORTERS’  AND  GROCERS’  BOARD, 
NEW  YORK  COTTON  EXCHANGE, 

NEW  YORK  CHEAP  TRANSPORTATION  ASSOCIATION, 
NEW  YORK  BUTTER  AND  CHEESE  EXCHANGE. 


JANUARY  25,  1875. 


NEW  YORK: 

HENRY  NICHOLS,  PRINTER, 

75  Gold  Street. 


. 


COMMUNICATION 


TO 


HON.  SAMUEL  B.  RUGGLES, 


I1NT  COMMITTEE  OF  CONFERENCE 


COMMERCIAL  FACILITIES, 


NEW  YORK  CHAMBER  OF  COMMERCE, 

NEW  YORK  PRODUCE  EXCHANGE, 

NEW  YORK  IMPORTERS’  AND  GROCERS’  BOARD, 


NEW  YORK  COTTON  EXCHANGE, 

NEW  YORK  CHEAP  TRANSPORTATION  ASSOCIATION, 
NEW  YORK  BUTTER  AND  CHEESE  EXCHANGE. 


JANUARY  25,  1875. 


NEW  YORK: 

HENRY  NICHOLS,  PRINTER, 


CHAIRMAN 


ON 


OF  - 


75  Gold  Stbeet. 


Office  of  I lie 


BAXTER  STEAM  CANAL-BOAT  TRANSPORTATION  CO., 
56  Exchange  Place, 

New  York,  January  25,  1875. 

To  HON.  SAMUEL  B.  RUGGLES,  Chairman  of  Joint  Confer- 
ence Committee  on  Commercial  Facilities  (of  Chamber  of 
Commerce,  Produce  Exchange,  Cotton  Exchange,  Importers’ 
and  Grocers’  Board,  Cheap  Transportation  Association, 
and  Butter  and  Cheese  Exchange)  : 

Sir — In  communicating  officially  to  your  important  body, 
the  present  capacities  and  future  capabilities  shown  by  the 
company  now  operating  and  inaugurating  transportation  by 
the  “ Baxter  Steam  Canal  System  ” on  the  Erie  Canal,  I shall 
offer  only  the  commercially  important  facts,  and  as  'practically 
demonstrated;  knowing,  that  to  one  so  eminently  qualified  as: 
yourself,  all  engineering  details  pertaining  to  the  system  and  to 
the  canals  are  fully  apparent  from  other  tabulations ; and,  for 
the  needs  and  possibilities  of  commercial  transport,  your  own 
experience  and  investigations  furnish  leading  authority. 

There  are,  however,  so  many  well  circulated  misstatements 
to  the  effect,  that  “water  transportation  must  be  superseded 
for  all  purposes  by  railways that  “steam  never  has  shown 
economy  over  horse  towage  on  canals  and  never  can  do  so;” 
that  “boats  must  be  towed  in  trains;”  that  “railway  terminal 
facilities  can  be  made  equal  to  all  the  necessities  of  New  York 
Harbor,”  and  that  “all  engineering  experience  on  waters  must 
be  reversed  by  some  new  ideas,  instead  of  being  perfected,  fco 
navigate  canals,”  that  the  bases  of  public  information  have  been 
disturbed.  I may  therefore  be  excused  for  making  some 
premises  that  may  appear  axiomatic,  viz.: 

1st.  That,  even  by  horse  towage,  on  the  Erie  Canal,  and 
with  present  toll  rates,  freight  can  be  carried  at  less  cost  than 
by  any  railway,  as  shown  by  their  reports. 

^ cL  fc>b 


4 


2nd.  That  the  winter  earnings  of  railways,  and  the  passeo 
ger  and  fast  freight  profits,  enable  them  to  carry  heavy  freights 
for  a time  for  less  than  cost,  to  discourage,  or  destroy  the 
canal  transport;  after  which  there  would  be  “winter  rates” 
the  year  round. 

3rd.  Canal  boats  give  better  terminal  facilities  than  any 
fixed  elevators  or  depots  can  do,  for  the  needs  of  New  York 
Harbor  with  its  steam  commerce  and  widely  distributed  store 
houses. 

4th.  I hold  that  horse  towage  for  boats  is  the  cheapest 
system  of  transportation  next  to  propelling  each  boat  by  suffi- 
ciently economical  steam  machinery.  And  that  horse  towage 
will  maintain  its  position  until  so  superseded.  No  system  of 
“hauling”  or  “train  towage”  will  save  time  or  money; 
because  each  boat  in  a tow  must  wait  at  a lock  until  the  hind- 
most passes — and  the  resistance  to  motion  in  a confined 
channel  which  a combined  mass  gives,  requires  a large  increase 
of  power  and  consequent  cost.  I am  constrained  to  this  opin- 
ion, from  no  hostility  to  the  use  of  tug  towage  or  cable  experi- 
ments, as  our  steamers  from  their  speed  and  their  independent 
direct  service  from  the  Buffalo  dock  to  the  place  of  delivery  in 
New  York,  are  not  affected  by  "any  change  of  the  method  of 
hauling  horse-boats  on  certain  sections  of  the  canal  or  between 
its  locks ; but  as  parties  in  these  interests  have  incompletely 
quoted  one  of  Engineer  Greene’s  reports  to  prove  a cheaper 
cost  than  Baxter  steamers,  I give  his  “ entire  conclusion”  re- 
garding it,  in  Appendix  marked  “F.” 

5th.  The  slow  speed  of  the  horse  boats,  however,  say  12  to  14 
days  between  New  York  and  Buffalo,  have  lost  to  them  almost  all 
freight  carriage  westward , so  that  their  earnings  for  the  down 
trip  of  500  miles  bear  the  expense  of  a round  trip  of  1,000 
miles  down  and  up.  Notwithstanding  this  fearful  disadvantage, 
the  traffic  has  survived  and  moves  an  enormous  volume  of  com- 
merce, controlling  railway  charges  on  certain  kinds  of  freight 
for  a majority  of  the  year. 

6th.  If  by  steam  a boat  can  be  run  for  less  cost  per  trip, 
an  advantage  is  gained ; and  if  also  the  time  of  transit  can  be 
reduced  one-half,  then  many  additional  classes  of  freight  can 


5 


be  secured,  and  paying  cargoes  can  be  obtained  going  west- 
ward. By  this,  not  only  the'  costs  of  carriage  are  reduced 
greatly,  but  the  gain  of  such  freight  adds  to  the  power  of  main- 
taining the  canal  while  it  detracts  from  its  competitors,  and 
the  Erie  Canal  can  maintain  low  freights  at  a profit. 

7th.  With  earnings  on  u up  ” trips  equal  or  even  one-half 
of  the  average  “ down,”  it  is  not  in  the  power  of  any  present 
engineering  resource,  off  of  a “ water  way,”  to  underbid  or 
compete  for  heavy  freights. 

That  canal  steamers  have  accomplished  during  the  last 
half  of  the  past  season,  fully  and  practically,  the  conditions 
which  give  the  cheapest  method  of  transport,  and  at  a profit 
which  will  secure  permanent  results  to  the  public,  I offer  the 
following 

STATEMENTS : 

1st.  That  the  speed  of  our  boats  is  double  that  of  the 
horse-boats,  each  steamer  being  capable  of  12  round  trips  at 
least,  per  season.  Running  time  between  New  York  and  Buffalo 
being  six  to  seven  days. 

2nd.  The  expense,  per  mile  run,  is  less  than  the  horse- 
boat — the  “ manning  ” of  our  boats  costs  more,  and  the  value 
of  the  boat  is  greater,  but  the  greater  number  of  miles  run  and 
of  tons  carried  per  month,  makes  the  expense,  per  ton  trans- 
ported, less,  for  these  two  items.  The  terminal  and  general 
expenses  for  each  are  about  equal ; while  the  cost  of  motive  pow- 
er of  the  boat  with  its  cargo  is  but  one-third  for  the  steamer 
in  the  round  trip  of  1,002  miles  from  New  York  to  Buffalo 
and  return. 

3rd.  By  the  speed,  the  consequent  power  to  earn  freight 
money  on  both  “ up  ” and  “down  ” trips  reduces  the  expense  of 
canal  carriage  by  one-half  on  every  ton  carried.  This  advan- 
tage of  time  has  induced  a new  commerce  to  canal  transport 
on  the  “ up  ” or  west  trip.  In  lieu  of  only  an  average 
of  $75,  given  in  reports  as  the  average  receipts  “up”  of 
horse-boa,ts  (or  one-eighth  of  a fair  compensation),  gained  by 
infrequent  loads  of  lowest  priced  commodities — our  few 
steamers  in  the  autumn  earned  an  average  of  over  $300  on 
each  “ up  trip,”  from  a good  class  of  mixed  merchandise,  and 


6 


this  from  half- loads,  as  the  uncertain  sailing  days,  consequent 
on  the  small  number  of  boats,-  prevented  the  obtaining  of  the 
full  loads  which  the  line,  with  several  boats  leaving  “ daily,” 
and,  more  widely  known,  will  receive. 

4 th.  There  is  apparently  little,  if  any,  room  for  any  furth- 
er cheapening  of  transportation  beyond  this  point  now 
gained.  For  this  statement,  I submit  to  you,  that  no  cheaper 
vehicle  than  a boat  can  be  offered ; that  all  expenses  except 
that  of  motion  (viz.,  terminal  and  general),  are  matters  of  or- 
ganization of  business ; and  that  the  movement  of  over  two 
hundred  tons  of  freight,  with  from  fourteen  to  eighteen  pounds 
of  coal  (say  six  cents  cost,)  per  mile,  gives  no  margin  of 
practical  value  to  reduce.  The  saving  would  be  under  twenty 
(20)  cents  on  a ton  of  freight  carried  from  New  York  to 
Buffalo  if  an  engine  could  be  run  without  any  fuel. 

I take  pleasure  in  referring  to  the  authority  of  your  own 
remarks  to  the  Chamber  of  Commerce,  January  7,  inst.,  (as  re- 
ported) for  the  statement,  that  in  examination  of  the  trial 
steamer  constructed  some  years  ago  (and  which  bore  your 
name),  having  the  most  economical  and  best  adapted  machin- 
ery and  construction  then  devised  ; you  came  to  the  conclusion, 
that  if  the  standard  length  of  boat  could  be  increased  by  20 
feet,  that  the  relative  proportions  of  machinery  and  fuel  car- 
ried, to  the  load,  would  make  canal  steamers  the  most 
economical  of  all  freight  carriers;  and  that  this  settled  con- 
viction had  led  to  your  desire  that  the  locks  should  be  length- 
ened by  20  feet.  That  boat,  you  stated  to  have  run  on  40 
pounds  of  coal  per  mile.  It  is  now  shown  that  the  Baxter  boats 
of  the  same  length  have  run  on  15  pounds  per  mile,  therefore, 
instead  of  the  boat  being  enlarged  by  one  fifth  of  its  whole,  or  by 
say  one-  fourth  of  its  cargo  space,  our  boats  have  reduced  the 
motive  power  in  weight  and  consumption  by  one-half  \ in  the 
standard  sized  boat;  bringing  the  proportion  of  load  to  machin- 
ery and  fuel,  to  a point  much  more  favorable  than  that  to 
which  your  experienced  judgment  had  assigned  success. 

Opposing  interests  are  at  this  moment  scattering  unsigned 
printed  documents  with  false  and  suppositional  statements 
as  to  the  costs  and  returns  of  our  steamers,  which  in  no  wise 


7 


affect  the  facts  or  the  means  of  demonstrating  them  to  those 
really  interested  in  cheap  transportation  to  our  harbor;  but 
only  in  the  futile  endeavor  to  dissuade  or  delay  capital  in  the 
certain  increase  of  our  facilities,  which  their  importance  anfl 
profit  are  claiming. 

I append  notes  of  description  of  boats,  and  from  the 
statements  of  our  Company ; also  extracts  from  authorities  in 
the  confirmation  of  my  statements  here  made. 

If  it  cannot  be  disproven  that  steam  carriage  on  the  canal 
has  been  brought  to  a point  by  our  system,  beyond  which 
economies  in  cost  of  motion  can  have  but  slight  practical 
value;  and  if  it  is  also  true  that  it  will  profitably  reward 
capital  by  charges  equaling  the  actual  cost  to  any  other  car- 
rier of  freight,  should  it  not  interest  every  merchant  and  real 
estate  owner  of  New  York  to  examine  the  desirability  of  in- 
creasing its  investment  and  locating  its  control  ? 

I remain,  Sir, 

With  great  respect, 

Your  obedient  servant, 

“WM.  BAXTER,” 

Engineer  to  the  Baxter  Steam  C.  B.  Trans’n  Company. 

NOTES  (MECHANICAL). 

The  “ Baxter  Canal  Steamers”  are  98  feet  long  by  17£ 
feet  wide  and  10  feet  deep ; engine  and  boiler  room  9 by  12 
feet  in  the  extreme  stern,  about  equaling  the  room  for  “horse 
stable  ” in  the  old  boats ; leaving  full  average  carrying  capac- 
ity on  equal  draft  of  water.  The  boats  weigh,  with  the  engine 
and  necessary  coal  aboard,  about  as  much  as  the  ordinary 
horse-boat,  the  hull  being  not  so  heavily  but  more  strongly 
constructed.  The  bottom  is  flat,  sides  vertical  with  square 
bilge,  bow  and  stern  arched  laterally  but  perpendicular 
vertically. 

The  engine  is  the  new  “ Baxter  Compound  Marine  En- 
gine,” using  steam  on  the  most  approved  economical  principle, 
but  devised  with  the  utmost  simplicity  of  construction  and 
management — full  capacity  fifty  horse-power  ; average  power 


8 


developed  in  running,  thirty  horse.  Propeller  is  of  the 
ordinary  principle,  but  so  modified  in  its  proportion  and 
adapted  to  the  slow  speed  on  a confined  water  way,  that  the 
ultimate  of  power  may  be  utilized  by  avoidance  of  “ slip.” 

The  boat,  as  constructed,  involves  no  new  or  questionable 
principles,  or  theoretical  devices,  but  is  the  adaptation  of  the 
most  advanced  engineering  experiences  in  the  combination 
necessary  for  this  business.  There  seems  to  be  practically  but 
scant  room  for  improving  the  economy  of  this  Carrier  on  Ca- 
nals: mechanically,  the  limits  of  the  problem  for  the  Erie 
Canal  are  simple,  and,  mathematically  considered,  any  devia- 
tion from  this  combination  must  impair  the  results. 


NOTES  (COMMERCIAL). 

The  business  of  the  Company  was  commenced  with  two 
(2)  boats  on  the  opening  of  the  canal,  May,  1874.  Boats  were 
added  slowly  until  by  September  1,  five  (5)  boats  were  in  line. 
Without  established  business  notoriety  or  connections  and 
subject  to  the  disturbances  of  trial  trips,  exhibitions  and 
special  uses,  the  business  becomes  fairly  a matter  of  record 
during  the  last  two  months  of  navigation.  Even  then,  the 
difficulties  of  training  men  to  unaccustomed  routines  of  duty, 
and  those  incident  to  getting  a new  class  of  machinery  proper- 
ly fitted  and  adjusted,  together  with  the  delays  in  obtaining 
new  and  unusual  classes  of  freights  “up”  reduce  the  aggregate 
of  business  for  the  time  below  what  is  plainly  indicated  as 
practicable,  by  the  records  of  uninterrupted  trips,  and  which 
can  be  made  constant  through  the  season. 

Regarding  the  carrying  capacity  : it  has  not  been  desired 
to  overload  the  boats,  especially  on  a first  season  and  in  the 
present  unequal  condition  of  the  Canal  bottom,  and  their  full 
capacity  of  draught  may  not  have  been  tested,  but  the  records 
show,  that  coming  eastward,  the  boats  carried : 


Wm.  Baxter,” 

City  of  Rochester,” 
City  of  New  York,’ 
City  of  Buffalo,” 


Sept.  21,  217  tons, 

Oct.  13,  215  “ 

“ 23,  229  “ 

“ 26,  217  “ 


1,443  lbs. 
620  “ 
300  “ 
400  “ 


The  total  number  of  “ down  ” trips  has  been  thirty-nine, 

— carrying  in  all  7,870  tons,  236  pounds — averaging,  including 
the  early  and  partially  loaded  trips,  202  tons  per  trip. 

The  trips  west  from  New  York  in  the  autumn  have  se- 
cured an  average  of  100  tons  each  of  mixed  merchandise,  being 
half  the  capacity ; and  this  from  a class  of  merchants  shipping 
for  the  first  time  by  this  route,  and  the  line  not  a “ daily,”  or 
well  advertised  and  known.  There  seems  no  reason  why, 
hereafter,  the  “up”  trips  will  not  make  earnings  equaling  the 
“down”  trips,  charging  rates  less  than  railway  tariff,  and  deliv- 
ering in  a time  acceptable  to  shippers.  The  speed  of  trips 
loaded  is  indicated  by  the  several  records,  viz. : 

“City  of  Rochester,”  round  trip,  New  York  to  Buffalo  and 
return,  12  days,  6 hours.  September  29,  1874. 

“ City  of  New  York,”  round  trip,  New  York  to  Buffalo  and 
return,  13  days,  2 hours.  October  7. 

“ City  of  Syracuse,”  round  trip,  New  York  to  Buffalo  and 
return,  12  days,  15  hours.  October  13. 

“ Wm.  Baxter,”  round  trip,  New  York  to  Buffalo  and  return,  10 
days,  22  hours.  October  16. 

“ City  of  Buffalo,”  round  trip,  New  York  to  Buffalo  and  return, 

11  days,  7 hours.  November  4. 

This  “ time  ” record  is  from  the  hour  of  starting  loaded 
from  New  York  pier  to  the  return  for  delivery,  and  includes 
the  unloading  and  reloading  en  route , but  not  £$ 

0}"  the  New  York  “lay  days.” 

It  will  be  seen  that,  estimating  16  days  per  “ round”  trip 
including  time  at  New  York,  twelve  trips  will  be  made  in 
a canal  season  of  192  days,  and  that  every  sixteen  boats  in 
line  gives  one  boat  daily  leaving  New  York,  so  that  when 
eighty  boats  can  be  put  on  by  the  Company,  which  is  hoped  for 
on  the  ensuing  season,  there  will  be  five  boats  daily  from 
each  terminus  and  a carrying  capacity  of  over  1,000  tons 
daily  average  from  New  York  and  from  Buffalo. 

The  cost  of  transportation  by  our  steamers  is  as  follows, 
basing  the  fixed  charges  on  the  rates  of  1874,  dividing  the 
costs  of  full  season  on  twelve  “ round  ” trips  : 


10 


BURNING  EXPENSES  : 

Captain,  2 hands,  and  cook,  and  board  of  crew  by  contract, 

7 months,  $225  per  month $1,575.00 

Two  engineers,  7 months,  $80  per  month 560.00 

Coal,  say  12  tons  per  trip,  12  trips,  at  $ 5.50  per  ton 792.00 

Trimming  cargo,  “ “ 18.00  per  trip 216.00 

Elevating  costs,  “ “ 53.00  “ 636.00 

Tolls  on  hull,  “ “ 13.80  “ ' 165.60 

Repairs,  oil  and  waste 125.00 

$4,069.60 

GENERAL  EXPENSE: 

Dockage,  &c.,  per  season ! $120.00 

Insurance,  12  trips,  at  say  $30  per  trip 860.00 

Commission,  per  boat,  per  season 300.00  780.00 

$4,849.60 

Per  round  trip  of  each  boat,  one-twelfth $404.13 

Earning  Capacity  of  “down”  trip,  on  say  7,200 

bushels  wheat,  at  10  cts.,  less  toll,  3.1  cts.,  6.9  cts.$496.80 

Delivery  charge 12.00 

On  “ up  ” cargo,  net  of  all  expense  and  tolls — at  rates 

below  railway  tariff  for  same  classes — say 350.00  858.80 

Net  per  trip $454.67 

Earnings,  net,  per  boat,  per  season  of  12  trips $5,456.04 

HORSE-BOATS. 

To  estimate  horse-boat  earnings,  reduce  all  the  above  items 
which  are  charged  per  trip  from  twelve  to  seven  which  is 

their  full  running  capacity  per  season,  viz $4,849.60 

Less  the  items  for : 

5 trimmages $ 90.00 

5 Hull  tolls 69.00 

5 elevating  costs 265.00 

5 insurances 150.00  574.00 

$4,275.60 

Deduct  also  cost  of  steam  motion  : 

Charges  for  2 engineers  per  season,  as  above $560.00 

“ “ coal,  as  above 792.00 

“ “ repairs,  oil  and  waste,  as  above 125.00  1,477.00 

$2,798.60 


11 


Divide  this  for  7 trips  is,  per  trip. $399.80 

To  which  must  be  added  the  cost  of  motion  for  the 
horse-boat,  viz.,  horse  towage,  690  miles,  at 

30  cents $207.00 

Towage  on  Hudson  river,  down  and  up 40.00 

“ in  harbor 12.00  259.00 

Total  “ round  ” trip  expense  for  horse-boat $658.80 

EARNINGS  : 


The  average  of  72  boats  is  given  at  227  tons,  equal  to  7,560 
bushels  wheat,  freight  money  at  10  cents,  Buffalo  to 


New  York,  less  3.1  cents  toll,  6.91  cents $522.81 

Delivery  charges 12.00 

Up  freight  say 75.00 


Round  trip  receipts \ ..$609.81 


From  this  it  will  be  seen,  that  unless  the  boatman  can 
get  his  freights  net  of  all  commissions,  and  save  wages  by 
cheap  or  “ family”  labor,  wheat  cannot  be  carried  at  10  cents; 
and  certainly  no  profit  can  be  made  for  use  of  boat,  repairs,  &c. 


12 


APPENDIX. 

A. 

HON.  WM.  J.  MC  ALPINE  (THE  DISTINGUISHED  ENGINEER), 

in  his  address  at  Cooper  Institute,  May  8, 1873 — supplemented 
by  valuable  tables — says,  p.  20:  “I  am  told  at  this  place  in 

“ my  argument,  that  the  days  of  canals  and  water  transporta- 
“ tion  are  concluded,  and  that  the  great  traffic  of  the  country 
“ is  to  be  performed  hereafter  by  railways.  Nothing  can  be 
“ further  from  the  truth.  The  business  of  the  internal  lines  of 
“ commerce  disprove  the  allegation,  and  show  that  the  water 
“lines  do  actually  transport  the  great  mass  of  the  internal 
“ commerce  of  the  country.” 

B. 

GOV.  TILDEN, 

in  his  message,  presented  January  5,  1875,  after  most  ably 
treating  of  the  canal  and  recommending  that  its  present  con- 
dition be  improved,  says : “It  will  also  facilitate  the  use  of 

“ steam  canal  boats,  and  the  full  realization  of  the  advantages 
“they  may  be  expected  to  give  as  to  economy  of  transporta- 
tion. The  obstacle  to  their  use  in  1867  was  that  the 
“ machinery  in  its  then  state  displaced  too  much  cargo  to  be 
“ economical  and  was  in  other  respects  imperfect.  The  pro- 
“ gress  of  invention  since  then  seems  to  promise  more 
“beneficial  results.  If  the  movement  of  the  boat  can  be 
“ expedited  from  1.42  to  3 miles  per  hour,  including  the  time 
“consumed  in  the  lockages,  the  improvement  will  be  of  greater 
“importance  and  value.  The  estimate  of  the  able  Engineer 
“ of  the  Commission  on  Steam  Canal  Navigation  is  that  the 
“ cost  of  carriage  of  a bushel  of  wheat  from  Buffalo  to  New 
“ York  will  be  reduced  from  eight  (8)  cents  to  four  cents.” 

In  the  report  of  Governor  Tilden’s  remarks  to  the  Joint 
Committee  on  Commercial  Facilities,  December  19,  1874  (giv- 
en in  the  New  York  Tribune ),  he  said:  “He  thought  how- 

“ ever  that  the  question  of  the  commercial  facilities  of  New 
“York  was  being  rapidly  solved.  Steam  on  the  canals  would 


13 


“revolutionize  the  course  of  trade  and  the  threatened  diver- 
“ sion  of  traffic  would  not  practically  amount  to  anything 
“ serious.” 

C. 

CANAL- AUDITOR  THAYER, 

in  his  annual  report,  January,  1875,  says:  “The  efforts  for  a 

“practical  solution  of  this  question  in  the  main  appear  to  have 
“ terminated  with  the  expiration  of  the  commission  appointed 
“ to  examine  and  test  the  plans  submitted  in  competition  for 
“the  bounty  offered  by  the  State.  The  Baxter  Steam  Canal- 
“boat  Company  has  been  organized,  and  during  the  past 
“season  has  constructed  and  operated  seven  boats,  which, 
“ according  to  reports  furnished  this  department,  have  proved 
“successful  both  in  regard  to  increased  speed  and  greater 
“economy  as  compared  with  boats  moved  by  animal  power. 
“This  company  is  really  the  first  organized  to  employ  steam  as 
“ a motive  power  on  a scale  likely  to  prove  a financial  success. 
“ There  can  be  no  doubt  that  an  organization  with  a sufficient 
“ number  of  steamers  to  insure  daily  departures,  and  with  con- 
venient wharfage  facilities  at  New  York  will  command 
“business  at  remunerative  rates.  Such  an  enterprise  can  se- 
“cure  a large  and  profitable  traffic  in  both  directions  on  the 
“line  of  the  Erie  Canal.” 

D. 

THE  STATE  COMPTROLLER 

in  his  annual  report  issued  January,  1875,  says,  “In  this  con- 
“ nection  another  factor  of  the  problem  rises  into  importance. 
“ It  has  been  demonstrated,  I think,  with  reasonable  certainty, 
“ that  steam  can  be  successfully  and  economically  used  as  the 
“motive  power  for  boats  on  the  canals.  The  reduction  of  the 
“ time  of  transit  to  one-half,  or  less,  and  the  reduction  of  cost  in 
“ an  almost  proportionate  degree,  will  put  a new  face  upon  the 
“ whole  subject  of  canal  navigation.  It  promises  to  be  the 
“ most  valuable  and  fruitful  agency  yet  found  to  preserve  and 
“ increase  our  carrying  trade.  The  general  adoption  of  steam 
“power  will  demand  that  the  canals  shall  be  improved  and 
“ bottomed  out,  and  in  our  action  with  reference  to  the  future, 


14 


“ this  necessity  should  be  borne  in  mind.  With  the  cost  and 
“ time  of  carrying  greatly  diminished  through  this  more  efficient 
“ motor,  with  the  debt  extinguished  and  its  exactions  removed 
“ at  an  early  day,  and  with  the  tolls  reduced  to  the  mere  re- 
“ quirement  of  actual  running  expenses,  there  will  be  no  mode 
“ of  transportation,  for  bulky  freight  especially,  that  can  suc- 
“ cessfully  compete  with  our  canals.” 


E. 

DEPUTY  STATE  ENGINEER  GREENE. 

The  engineer  in  charge  of  the  canal  question — and  referred 
to  by  Governor  Tilden  in  his  message — made  a report  of  144 
pages,  covering  all  the  demonstrations  on  the  canal  of  the  year 
1872,  and  of  foreign  canal  experiences ; reporting  against  the 
towing  of  boats  in  trains  and  giving  the  following  summary  of 
results. 


MODE  OF  TRANSPORTATION. 


TOTAL  COST, 


per  ton  per  mile. 


“ by  Railroad  ” 

“Erie  Canal  and 
Hudson  River,  by 
animal  power  ” 

“ Same,  by  Steamer  ” 


9.23  mills, 
f 6.89  “ 
4.02  “ 


per  bushel  wheat 
Buffalo  to  N.  Y. 

13.85  cts. 


9.23  “ 


6.20  “ 


[In  this  is  included,  on  the  two  latter,  the  canal  tolls 
which  are  in  lieu  of  all  the  cost  of  interest  and  maintenance  of 
a roadway.  Without  the  toll  charge,  the  actual  cost  of 
moving  one  ton,  per  mile,  by  the  canal  steamer,  is  given  at 
2.68-100  mills.] 

His  deductions  were,  in  conclusion,  ‘‘that  the  practica- 
“ bility  of  substituting  steam  for  animal  power  on  the  canal  is 
“ substantially  demonstrated .” 

“ That  by  the  substitution  of  steam  the  tonnage  of  the 
•‘canal  maybe  largely  increased 

‘‘That,  all  things  considered,  the  cheapest  and  most  con- 
‘‘venient  mode  of  employing  steam  is  in  boats  carrying 
“ their  own  machinery  and  200  tons  of  cargo.  ' 


15 


44  That  an  ultimate  saving  of  50  per  cent  may  be  effected 
“ in  transportation,  exclusive  of  tolls. 

(Signed),  “D.  M.  GREENE, 

44  Engineer.” 

[See  Assembly  Doc.,  No.  71,  pp.  143-4,  Feb.  27, 1873.] 

F. 

In  Mr.  Greene’s  report  to  the  Legislature  submitted  Feb- 
ruary 17,  1874,  he  gave  elaborate  calculations  of  the  cost  of  the 
power  by  horse,  steam  or  cable  towage,  and  by  steamer ; and 
although,  in  his  opinion,  the  cost  of  motion  was  8 per  cent  less 
by  the  direct  hold  on  a cable  as  against  propulsion  in  water  by 
Baxter  steamer,  he  however,  states  that  costs  of  interest  and 
maintenance  are  omitted  to  the  former  while  they  are 
charged  against  the  steamer.  He  states  regarding  availability 
of  cable  towage,  page  82  of  report:  44 As  the  capacity  of 

44  a canal,  other  things  being  equal,  depends  upon  the  time  of 
44  lockage,  and  as  it  does  not  appear  that,  by  the  general 
44  adoption  of  this  system,  this  time  would  become  less  than  it 
“now  is  for  horse-boats,  it  follows  that  no  increase  over  the 
44  present  capacity  of  the  Erie  Canal  can  be  reasonably 
44  expected  to  result,  even  in  case  a double  line  of  cable  should 
44  be  put  in  operation  throughout  the  entire  length  of  the  canal 
44 as  is  now  proposed.” 

And  in  full  conclusion,  page  85  : 44  In  considering  these  re- 
sults, it  is  to  be  remembered  that  the  practicability  of  opera- 
44  ting  the  cable,  throughout  the  entire  length  of  the  canal,  is 
44  not  yet  demonstrated ; that  there  are  yet  other  practical  diffi- 
44  culties  which  remain  unsolved  ; that  the  duration  of  a trip  of 
44  cable-towed  boats,  between  Buffalo  and  New  York,  must 
44  be  considerably  greater  than  that  of  a steamer  ; and  finally, 
44  that  the  elements  of  interest  upon  cost  of  cable,  the  uncertain 
44  extent  of  its  annnal  depreciation  and  cost  of  repairs,  have 
44  been  omitted  from  our  estimate. 

44  Respectfully  submitted, 

44  D.  M.  GREENE, 

44  Engineer. 


“Albany,  Feb  17  1874. 


16 


g. 

Since  the  demonstrations  of  1873,  and  the  actual  workings 
in  1874,  which  have  been  reported  to  his  department,  Mr. 
Greene  has  written  (January  4,  1875): 

“I  have  to  say  that  your  canal  steamers  have  demon- 
“ strated  conclusively  that  the  Baxter  system  of  steam  canal 
“ navigation  is  a success.  * * * The  performance  of  your 

“boats  during  the  past  season  have  rendered  it  reasonably 
“certain  that  an  average  of  12  round  trips  may  easily  be 
“made  by  each  boat,  (with  the  line  in  good  running 
“order,)  and  that  the  cost  of  transportation  proper,  in- 
cluding maintenance  and  dividends  upon  stock,  will  be 
“fully  50  per  cent  less  than  it  has  heretofore  been  by  animal 
“ power.  No  plan  yet  presented  can  hope  to  compete  success- 
“ fully  with  the  Baxter  system ; least  of  all  can  any  system 
“ involving  the  movements  of  boats  in  trains  hope  to  approach 
“ it  either  in  economy  or  in  speed. 

(Signed),  “D.  M.  GREENE, 

“Deputy  State  Engineer  and  Surveyor.” 


“BAXTER  STEAM  CANAL-BOAT  TRANSPORTATION  COMPANY.” 


Total  Authorized  Capital,  ^1,000,000. 


President:  H.  H.  VAN  DYCK,  late  Assistant  Treasurer,  U.  S. 
f EL  H.  Van  Dyck. 

TV  „ ...  ! Franklin  Edson,  Pres.  Produce  Exchange,  N.Y. 

Finance  Committee : { „ XT  _ ’ , . . ..  __  - -o  i -vr 

| C.  N.  Jordan,  Cashier  Third  Nat.  Bank,  N.  Y. 

L Philo  Remington,  Pres.  Ilion,  N.Y.,  Nat.  Bank. 
Supervising  Engineer:  Wm.  Baxter. 


Shares,  $100  each,  unassessable. 


A portion  of  the  Stock  has  been  paid  in  duriug  1874,  and  the 
Company  now  own  twelve  first-class  canal  steamers. 

Additional  Stock  is  now  offered,  only  at  its  par  value,  at  which 
all  previous  sales  have  been  made,  and  is  for  the  further  construction 
of  the  “ Baxter”  Canal  Steamers  for  the  Company’s  Freight  Line, 
New  York  to  Buffalo  (and  for  which  the  Company  holds  the  exclusive 
rights  for  the  United  States). 

Application  to  be  made  only  to  Bipley  & Co. , 32  Pine  street,  the 
financial  agents  of  the  Company  for  Stock  subscriptions,  of  whom,  and 
'of  the  undersigned,  further  information  may  be  obtained. 

H.  H.  VAN  DYCK,  President. 

New  York,  January  25,  1875. 

The  business  of  transportation,  when  at  the  lowest  cost  in  compe- 
tition, has  proved  among  the  safest  and  most  profitable  of  investments. 

The  Baxter  Steam  Canal-boat  Transportation  Company  have  de- 
veloped an  earning  power,  that,  with  the  unlimited  demand  for  their 
facilities,  renders  their  Stock  an  unusually  desirable  investment.  The 
value  of  the  Company’s  operations  to  the  business  of  New  York  city 
should  invite  the  attention  of  investors. 

RIPLEY  & CO., 

Bankers  and  Agents  for  Stock  Subscriptions. 


THE 


BAXTER  STEAM  CANAL-BOAT  TRANS- 
PORTATION COMPANY. 

A responsible  Carrier  for  all  classes  of  Freight.  Twice  the  Speed 
of  carriage  by  Horse-boat.  Each  steamer  carries  the  tonnage  of  a 
full  railway  freight  train,  and  delivers  in  same  as  their  heavy  freights. 


Regular  Freight  Relow  the  *lctnal  Cost  to  any 

Railway . 


